As you are probably fully aware by now, the United States has moved to impose steep tariffs on Indian goods, escalating trade tensions and raising concerns across multiple sectors, including the diamond industry.
According to Reuters, the Trump administration’s decision follows India’s continued purchases of Russian oil, with an additional 25% levy announced on August 6 — set to take effect August 27 — coming on top of an earlier 25% tariff implemented August 7.
OMG
Yes, you read that correctly… before the first tariff was even implemented, Trump issued another 25% tariff. It’s enough to make your head spin. The combined duties will take total tariffs to 50% by August 27 — amongst the highest rates applied to any U.S. trading partner. India’s government estimates that about 55% of its merchandise exports to the U.S., including textiles, footwear, gems, and jewellery, will be affected.
Gary Roskin
Roskin Gem News Report
The Schoolyard Bully
These tariff threats have drawn sharp criticism from Indian leaders and industry observers. In an interview with India Today, Congress MP Shashi Tharoor likened Trump to a “schoolyard bully,” insisting that “our self-respect is simply not up for bargaining.” He stressed the importance of firm boundaries ahead of August 25 trade talks in Delhi, particularly to protect India’s agricultural sector. “We have 700 million people in our country who are dependent on agriculture. We cannot sell them down the river with subsidized American grains flooding our market,” he said. While urging calm negotiations, he warned that if India remains subject to a 50% tariff after talks, “at that point, we should make it clear — we will do it to you.”
Trump’s India/Russia Hypocrisy
Tharoor also accused the U.S. of hypocrisy, pointing out that America continues to buy Russian goods when it suits its interests. According to India Today, he cited U.S. imports of Russian fertilizers worth $806 million in the first five months of the year, as well as increased uranium imports, purchases of palladium, and other goods. “How can Mr. Trump argue that our dollars are fueling the Russian war machine, but American dollars spent in Russia are not? Isn’t this sheer hypocrisy — completely unfair and unjustified?” he asked.
Diamonds & Jewelry at Risk
The diamond sector faces a severe blow. Joshua Freedman at Rapaport noted that India manufactures more than 90% of the world’s polished diamonds, making U.S. tariffs especially damaging. “The market yearned for clarity. It got more uncertainty at a higher price,” Freedman wrote, warning the industry is now contending with “the worst of both worlds” — deep uncertainty and sharply higher costs. With no resolution likely before the August 25 negotiations, traders face an unsettled market and the prospect of a prolonged tariff standoff.
August is going to be a long month.
